Benefit credits considered income?


T

Thanks GWB!

I earn about $48,000 gross a year putting my monthly income at about
$4000 gross. I live in Ohio whose median income is $57,268 so I can file
chapter 7.

The problem is that my employer adds benefit credits to my monthly pay
totaling about $920. This pushes my yearly gross income to $59,000 a
year which is over the state median which would not allow me to file
chapter 7.

My taxable income shown on my W2 is based on $48,000 a year.

Which number do I use? Is benefit credits considered income?


Second question about this:

When you fill out Schedule I, do I use my gross based on 48K a year or
59K a year?

I'm really confused about this.
 
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J

JoblessDave

Thanks GWB! said:
I earn about $48,000 gross a year putting my monthly income at about $4000
gross. I live in Ohio whose median income is $57,268 so I can file chapter
7.

The problem is that my employer adds benefit credits to my monthly pay
totaling about $920. This pushes my yearly gross income to $59,000 a year
which is over the state median which would not allow me to file chapter 7.

My taxable income shown on my W2 is based on $48,000 a year.

Which number do I use? Is benefit credits considered income?
"Current monthly income" is used for means testing.

11 USC 101
(10A) The term "current monthly income"--
(A) means the average monthly income from all sources that the debtor
receives (or in a joint case the debtor and the debtor's spouse receive)
without regard to whether such income is taxable income, derived during the
6-month period ending on--

(i) the last day of the calendar month immediately preceding the date of
the commencement of the case if the debtor files the schedule of current
income required by section 521(a)(1)(B)(ii); or

(ii) the date on which current income is determined by the court for
purposes of this title if the debtor does not file the schedule of current
income required by section 521(a)(1)(B)(ii); and

(B) includes any amount paid by any entity other than the debtor (or in a
joint case the debtor and the debtor's spouse), on a regular basis for the
household expenses of the debtor or the debtor's dependents (and in a joint
case the debtor's spouse if not otherwise a dependent), but excludes
benefits received under the Social Security Act, payments to victims of war
crimes or crimes against humanity on account of their status as victims of
such crimes, and payments to victims of international terrorism (as defined
in section 2331 of title 18) or domestic terrorism (as defined in section
2331 of title 18) on account of their status as victims of such terrorism.
Second question about this:

When you fill out Schedule I, do I use my gross based on 48K a year or 59K
a year?
Schedule I is based on pay stub or profit and loss statement amounts.
"Gross," is the reported gross.
I'm really confused about this.
Welcome to the club.
 
T

Thanks GWB!

JoblessDave said:
Schedule I is based on pay stub or profit and loss statement amounts.
"Gross," is the reported gross.
BUT my W2 income is based on the lower amount (48K) so how can they
consider the reported gross of 59K a year if I don't earn that?
 
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R

RudeDave

Thanks GWB! said:
BUT my W2 income is based on the lower amount (48K) so how can they
consider the reported gross of 59K a year if I don't earn that?
Since you don't have enough money to buy legislation, *they* don't care.

11 USC 521(a)(1)(v)
(a)The debtor shall--
(1) file--

(A) a list of creditors; and

(B) unless the court orders otherwise--

(i) a schedule of assets and liabilities;

(ii) a schedule of current income and current expenditures;

(iii) a statement of the debtor's financial affairs and, if section
342(b) applies, a certificate--

(I) of an attorney whose name is indicated on the petition as the
attorney for the debtor, or a bankruptcy petition preparer signing the
petition under section 110(b)(1), indicating that such attorney or the
bankruptcy petition preparer delivered to the debtor the notice required by
section 342(b); or

(II) if no attorney is so indicated, and no bankruptcy petition
preparer signed the petition, of the debtor that such notice was received
and read by the debtor;

(iv) copies of all payment advices or other evidence of payment
received within 60 days before the date of the filing of the petition, by
the debtor from any employer of the debtor;

(v) a statement of the amount of monthly net income, itemized to show
how the amount is calculated; and

(vi) a statement disclosing any reasonably anticipated increase in
income or expenditures over the 12-month period following the date of the
filing of the petition;
 

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